THIRUVANANTHAPURAM: Hoteliers in Kerala will intensify their ongoing agitations seeking steps to address the alleged anomalies that existed while levying the Goods and Service Tax (GST) on food bills.

The Kerala Hotel and Restaurant Association (KHRA) will organise a day-long fast in front the Secretariat on Wednesday. Lashing out at the ‘unreasonable rates that have been fixed under the GST regime, KHRA president Moideen Kutty Haji and general secretary G. Jayapal say many restaurant owners are left with no option but to pass on the burden of increased taxes to the customers. This is the reason for the increase in food prices.

“The implementation of GST has had a detrimental effect on our businesses, particularly among small restaurants that has an annual turnover between Rs. 20 lakh and Rs. 75 lakh. Such outlets, which used to be levied a tax of 0.5% previously, are now required to pay 5% as tax without charging customers any extra amount and claiming input tax credit,” they say.

Besides, a GST rate of 12% have been imposed on non-AC restaurants that register an annual turnover of over Rs 75 lakh. While AC restaurants will come under the 18% tax slab, the same rate is being charged on takeaways as well as food served from a non-AC area of such outlets, they say.

The KHRA has demanded that restaurant food be exempted from GST or the tax rate for restaurants with annual turnover above Rs. 75 lakh be fixed at 5% along with the right to claim input tax credit.